SHO
Sunstone Hotel Investors, Inc.
SHO's fundamentals are strong: its operating margin rose 7 points to 9.3% and revenue grew 7.4%. At 28x earnings, it's trading in line with its usual 27x. Analysts expect strong earnings growth.
SHO Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| N/A | |
| N/A |
SHO's profitability is currently healthy, and its revenue is stable. Free cash flow and net leverage aren't meaningful measures for real estate companies like SHO.
SHO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 13x | $5.65 | -56% |
| Fair | 27x | $12.26 | -3.5% |
| Current | 28x | $12.70 | — |
| Forward | 58x | $12.70 | — |
| Expensive | 182x | $82.07 | +546% |
Historical ranges are pointers, not guarantees.
SHO's PE is in its fair range at 28x. On analysts' estimates for next year's earnings, today's price would be 58x, in its expensive range.
SHO Forward outlook
| Metric | Outlook |
|---|---|
| Strongly deteriorating | |
| Strong growth | |
| Stable | |
| Strongly improving | |
| Limited | |
| High |
Analysts expect SHO's earnings to grow and its profitability to improve, with its revenue holding steady.
SHO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $0.22 | -51% |
| Q3 2026 | $0.45 | +$0.45 |
| Q2 2026 | $0.22 | +1000% |
| Q1 2026 | $0.11 | +10% |
| Q4 2025 | $0.04 | -71% |
| Q3 2025 | $0.00 | -100% |
| Q2 2025 | $0.02 | -98% |
| Q1 2025 | $0.10 | -89% |
| Q4 2024 | $0.14 | -85% |
SHO has returned to profit: it earned $0.45 per share over the past year, after losing money the year before.
SHO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $233.7M | +1.9% |
| Q2 2026 | $277.1M | +6.7% |
| Q1 2026 | $259.7M | +11% |
| Q4 2025 | $237M | +10% |
| Q3 2025 | $229.3M | +1.3% |
| Q2 2025 | $259.8M | +5% |
| Q1 2025 | $234.1M | +7.8% |
| Q4 2024 | $214.8M | -2% |
SHO's revenue has grown year over year for seven quarters in a row: $234M last quarter, up 1.9% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 18% | +17 points |
| Q2 2026 | 9.5% | +5.3 points |
| Q1 2026 | 7.2% | +4.9 points |
| Q4 2025 | 3% | +2.6 points |
| Q3 2025 | 0.6% | -0.6 points |
| Q2 2025 | 4.2% | -6.5 points |
| Q1 2025 | 2.3% | -3.3 points |
| Q4 2024 | 0.4% | -59 points |
SHO's operating margin was 18% last quarter, up 17 points from the same quarter a year ago.
SHO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $30.5M | -17% |
| Q2 2026 | $39.6M | +28% |
| Q1 2026 | $14.4M | +276% |
| Q4 2025 | $7.3M | +$23.9M |
| Q3 2025 | $36.7M | +627% |
| Q2 2025 | $30.9M | +124% |
| Q1 2025 | $3.8M | -64% |
| Q4 2024 | -$16.6M | -$9.8M |
SHO's free cash flow was $92M over the past year, up 68% from the year before. Free cash flow isn't a meaningful measure for real estate companies like SHO.
SHO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -2.2% | -4M shares |
| 1 year | -4.1% | -7.8M shares |
| 3 years | -12% | -24.3M shares |
| 5 years | -17% | -36.2M shares |
| Available history | -20% | -44.2M shares |
SHO has 182M diluted shares, down 4.1% from a year ago, with $146M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $103.2M |
| Q2 2026 | $11.4M |
| Q1 2026 | $29.1M |
| Q4 2025 | $1.9M |
| Q3 2025 | $2.3M |
| Q2 2025 | $90.5M |
| Q1 2025 | $8M |
| Q4 2024 | $944,000 |
SHO spent $146M buying back its own shares over the past year, up 43% from the year before.
SHO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 3.1x | Elevated |
| Q2 2026 | 4.6x | High |
| Q1 2026 | 4.9x | High |
| Q4 2025 | 5.1x | High |
| Q3 2025 | 5.3x | High |
| Q2 2025 | 5.3x | High |
| Q1 2025 | 4.7x | High |
| Q4 2024 | 4.4x | High |
SHO's net debt is about 3.1 years of its operating earnings (EBITDA), down from 5.3 years a year ago. Net leverage isn't a meaningful measure for real estate companies like SHO.
SHO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 69.1 | Neutral |
| Stochastic | 86.3 | Overbought |
SHO's weekly RSI is 69 (neutral) and its Stochastic is 86 (overbought).
SHO PE vs Real Estate Sector
| Metric | SHO | Sector median | Relative |
|---|---|---|---|
| PE | 28x | 24x | 18% above |
| PE % | 58 | 23 | 35 pts above |
SHO is trading at 28x earnings, a 18% premium to the Real Estate sector's median of 24x.
SHO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $12.0 | 5.6% above |
| 20 week MA | $11.6 | 9.6% above |
| 50 week MA | $10.5 | 21% above |
| 100 week MA | $10.0 | 26% above |
| 200 week MA | $10.1 | 25% above |
SHO has climbed back above all five of its weekly moving averages, and it's now 25% above its 200-week average.
SHO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $14.4 | $11.4 | -21% |
| 2021 | $11.4 | $11.7 | +2.9% |
| 2022 | $11.7 | $9.64 | -17% |
| 2023 | $9.64 | $10.7 | +11% |
| 2024 | $10.7 | $12.0 | +12% |
| 2025 | $12.0 | $9.12 | -24% |
| 2026 YTD | $9.12 | $12.7 | +39% |
SHO is up 39% so far in 2026, after finishing lower in three of the previous six years.